Ava Labs and NEC Sign MOU to Explore One‑Step Identity and Stablecoin Settlement

• Ava Labs and NEC Corporation signed a memorandum of understanding to explore on-chain services with biometric verification on the Avalanche network.
• The technical white paper proposes a two-layer architecture that settles stablecoin payments while verifying user identity without storing biometric data on-chain.
• The initial use case targets tourist payments in Japan, which welcomed 42.68 million visitors in 2025 and already has a legal framework for stablecoins.

NEC Corporation, one of the world’s leading companies in biometric identity technology, signed a Memorandum of Understanding with Ava Labs to explore a new generation of on-chain services combining facial recognition with the multichain architecture of Avalanche. As a first result of that collaboration, both companies published a technical whitepaper proposing an architecture for stablecoin payments with integrated identity verification.

The document’s starting point is a structural limitation of the blockchain ecosystem: chains are efficient at transferring value, but not at answering who is behind a transaction. That problem gives rise to fraud, redundant identity checks, high compliance costs, and a disproportionate exposure of personal data relative to the purpose of each operation. With the rise of artificial intelligence agents acting on behalf of users, the problem becomes more urgent.

The global leader in biometric identity is working with Avalanche.@NEC has deployed 1,000+ biometric identity systems across 70+ countries.

Now, NEC and Ava Labs are working together to build an architecture for biometric-verified blockchain based services. pic.twitter.com/CJpr06iOKx

— Avalanche🔺 (@avax) July 10, 2026

NEC: 125 Years of Track Record

NEC has spent more than 125 years building critical infrastructure. Its facial recognition technology ranked first in the NIST FRTE 1:N benchmark, with an error rate of 0.06% across a base of 12 million people. The company has deployed more than 1,000 biometric identification systems in 70 countries and was responsible for population-scale facial recognition at Expo 2025 in Osaka.

The whitepaper describes a two-layer architecture. NEC contributes the identity layer through FaceVC, a verifiable credential of biometric origin. Avalanche contributes the blockchain layer, distributed across three specialized chains connected via Interchain Messaging: a permissioned L1 for decentralized identity records, SETTL for stablecoin settlement with selective privacy and regulatory auditability, and the C-Chain for reward tokens and promotional NFTs. The core principle is that biometric data is never stored on-chain; only the proof that verification was successful is transmitted.

Japan Will Be the Pilot Case

The initial use case will be payments made by international tourists in Japan. The country surpassed 42.68 million visitors in 2025, the first year above 40 million according to the JNTO, and has since had a legal framework that recognizes fiat-backed stablecoins as electronic payment instruments. A visitor obtains their FaceVC before arriving; at the point of sale, a single approval completes both identity verification and settlement in one step.

The whitepaper makes clear that this is a proposal, not a product already launched. Projected applications include AI agent authentication, private key protection with biometric verification, fan experiences tied to verified individuals, and public benefit programs with restricted-use funds.